Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About A week ago 79
I have large Portfolio of property in the NE and I am looking at a number of avenues to avoid this tax regime from the summer budget.
I have no income other than from property, have a very good cashflow and pay high rate tax now,
Yes I could move half of my BTLs to a LTD Co with little CGT or Stamp Duty to pay as half of my BTLs have been purchased since 2008 and there has been little Capital growth since then in the NE.
Even if this new evil tax had not come around the corner I would have thought of using a LTD co for future purchases. This would give me the option to bring my family into the Ltd Co via Shares Wife ,Son and Grandchildren.
Now I need to inflate my expenses on Management and Repairs to reduce the Taxable cash in my BTL business. My plan is to use my Co to do all the repairs for my BTLs
so lets say I have a repair cost on BTL of £100.00 my Ltd Co would do the repair with the help of a tradesman charge of say 25%. My BTL would then have an invoice for £125.00
The effect would be a larger Repair Bill for my BTL and My Ltd Co would have a profit of £25.00.
As I am 57 pensions would be a good choice for My LTD Co to fund my pension etc which is tax efficient.
Is this sort of arrangement legal and do others see any problems with the arrangement
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